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1. AUSTIN J. SHELTON, also known as A.J. SONNY
SHELTON, also
known as SONNY SHELTON (SHELTON), is indicted and made a Defendant herein.

2. Typhoon Paka struck Guam on the night of December 16-17, 1997,
causing extensive damage throughout the island. The federal government, through
the Federal Emergency Management Agency (FEMA), made in excess of $70 million
in federal funds available for disaster relief in Guam.

3. Expecting that the Government of Guam would apply for and receive
federal reimbursement, the Legislature of Guam on December 18, 1997 made monies
from the Guam General Fund available so that the the Executive Branch could
immediately pay for the clean-up and repair of damage caused by Typhoon Paka
("Typhoon Paka Projects") (Bill No. 467.)

4. At all times relevant to this Indictment, the Department of Parks and
Recreation (DPR) was an agency of the Government of Guam, and Defendant
SHELTON was the Director of the DPR and an agent of the DPR. It was his duty,
among other things, to establish fees, rules, and regulations to accomplish the
purposes of the DPR; administer the DPR; prescribe the duties of assistants, deputies,
agents, and other persons employed by the DPR; and manage the Parks fund.

5. When the Governor of Guam declared a State of Emergency with regard
to DPR, he authorized DPR to spend from the General Fund. He also gave the
Defendant SHELTON authority to procure goods and services for Typhoon Paka
Projects outside of the normal procedures. (Executive Order 97-41.) Defendant
SHELTON was required to follow certain statutes and regulations in his
administration of DPR procurements for Typhoon Paka Projects. Those statutes and
regulations included a requirement that SHELTON solicit at least three price
quotations before awarding a project.

6. At a time when the people of Guam were suffering through an emergency,
and despite his duty to carry out his responsibilities with loyalty, honesty, integrity,
and faithfulness, Defendant SHELTON devised and carried out a corrupt scheme and
plan, as specified below in Paragraph Nine of this Count. Defendant SHELTON used
his position dishonestly and corruptly: he rigged the price quotation process for certain
Typhoon Paka Projects, and corruptly solicited, demanded, accepted and agreed to
accept cash payments totaling at least $105,000.

7. After the Typhoon Paka Emergency, DPR, under Defendant
SHELTON,
failed to provide the Government of Guam's Recovery Coordination Office (RCO) with
the documentation necessary for the RCO to request FEMA reimbursement for the
Paseo Light Tower, Wettengel Football Field, Ypao Beach Pavilion and Cabanas, and
Agaña Tennis Court / Paseo de Susanna Typhoon Paka Projects. Nonetheless, at all
times material to this Indictment, the DPR received federal benefits, in the form of
Typhoon Paka relief assistance from FEMA, and assistance from other federal sources,
that exceeded $10,000 within any one year period.

THE DUTY OF HONEST SERVICES

8. In 1996, the 23rd Guam Legislature passed "AN ACT TO
PRESCRIBE
STANDARDS OF CONDUCT FOR ELECTED OFFICERS, APPOINTED OFFICERS
AND PUBLIC EMPLOYEES OF THE GOVERNMENT OF GUAM AND TO
ESTABLISH AN ETHICS COMMISSION BY ADDING A NEW CHAPTER 15 TO
TITLE 4, GUAM CODE ANNOTATED; AND TO AMEND 4 GCA §13101,
RELATIVE
TO FINANCIAL DISCLOSURE REQUIREMENTS" (the Act). The Act established the
Guam Ethics Commission and required that the Act be liberally construed to promote
the highest standards of ethical conduct within the Territorial government. As
Director of the DPR, Defendant SHELTON:

Was subject to the provisions of the act prohibiting him from
soliciting, accepting or receiving, directly or indirectly, any gift valued
singly or in the aggregate from a single source in excess of $200, whether
in the form of money, prize, service, loan, travel, entertainment,
hospitality, thing or promise, or in any other form, when a reasonable
person would infer that the gift was intended to influence him in the
performance of his official duties or was intended as a reward for any
official action on his part;

Was further subject to the provisions of the act prohibiting him
from using or attempting to use his official position to secure or grant
unwarranted privileges, exemptions, advantages, contracts, or treatment,
for himself or others by either accepting, receiving, or soliciting
compensation for the performance of official duties or responsibilities, or
soliciting, selling, or otherwise engaging in a financial transaction with
a subordinate or a person or business whom he inspects or supervises in
his official capacity; and,

Owed his employer, that is, the Government of the Territory of
Guam (Government of Guam) and its citizens, a general duty of loyalty,
honesty, integrity and faithfulness.

THE SCHEME

9. From sometime in about December 1997 until at least sometime in about
October 1998, within the District of Guam and elsewhere, Defendant SHELTON and
others known and unknown to the Grand Jury, did devise and intend to devise a
scheme and artifice to defraud the Government of Guam and the DPR and to obtain
money and property by means of materially false and fraudulent pretenses,
representations, and promises, and to deprive the Government of Guam, the DPR, and
the citizens of the Territory of Guam of their intangible right to the honest services of
Defendant SHELTON.

THE PURPOSE OF THE SCHEME

10. It was a purpose of the scheme and artifice to defraud and deprive (the
Scheme) to unlawfully enrich Defendant SHELTON through:

The personal exploitation of information by Defendant SHELTON
relating to the availability of DPR Typhoon Paka Projects, to which
information Defendant SHELTON was privy by virtue of his position as
Director of the DPR;

The unlawful solicitations and demands for the benefit of himself
and other persons, and the acceptance and agreements to accept, things
of value from companies and persons providing goods and services for
DPR Typhoon Paka Projects; and

The concealment by Defendant SHELTON of all of the above from
the Government of Guam and citizens of the Territory of Guam.

MANNER AND MEANS OF EXECUTING THE
SCHEME

11. It was part of the Scheme that Defendant SHELTON would
deceive the
DPR and the Government of Guam into believing that at least three authentic,
independent, competitive price quotations were being submitted for DPR Typhoon
Paka Projects, when, in fact, Defendant SHELTON knew that he was causing to be
submitted price quotations that were collusive, non-competitive, fraudulent, and
artificially high.

12. It was further part of the Scheme that Defendant SHELTON
would
arrange artificially high prices for the DPR Typhoon Paka Projects based on those
collusive, non-competitive, fraudulent, and artificially high price quotations.

13. It was further part of the Scheme that Defendant SHELTON
would
allocate to specified individuals DPR Typhoon Paka Projects.

14. It was further part of the Scheme that Defendant SHELTON
would
award DPR Typhoon Paka Projects on the basis of collusive, non-competitive,
fraudulent, and artificially high price quotations.

15. It was further part of the Scheme that Defendant SHELTON
would cause
work to be done in fulfillment of the DPR Typhoon Paka Projects.

16. It was further part of the Scheme that Defendant SHELTON
would
request, cause to be issued, obtain, and receive checks from the Government of Guam
which were payments for the DPR Typhoon Paka Projects.

17. It was further part of the Scheme that Defendant SHELTON
would
convey, transmit, distribute, and cause to be conveyed, transmitted and distributed
checks from the Government of Guam which were payments for the DPR Typhoon
Paka Projects.

18. It was further part of the Scheme that Defendant SHELTON
would
receive and accept cash representing a portion of the payments made by the
Government of Guam for the DPR Typhoon Paka Projects.

19. It was further part of the Scheme that Defendant SHELTON
would, in
order to conceal the fraudulent Scheme described above, give and cause to be given
false and misleading information concerning the cost and status of the DPR Typhoon
Paka Projects.

USE OF INTERSTATE WIRE FACILITIES
IN FURTHERANCE OF THE SCHEME

20. On about the following date, in the District of Guam, Defendant
SHELTON, for the purpose of executing and attempting to execute the Scheme, did
transmit and cause to be transmitted in interstate and foreign commerce by means of
a wire communication, certain writings, signs, signals, and sounds: a facsimile
transmission accepting an offer to ship lighting equipment, sent on about February 5,
1998 from the offices of D.S. Corporation, doing business as Bunny Hardware, which
originated at or near Maite, Guam, to the offices of OSCAR Trading Co., located in
Compton, California.

ALL IN VIOLATION OF TITLE 18, UNITED STATES CODE, SECTIONS 1343,
1346 AND 2.

COUNT TWO

WIRE FRAUD[18 U.S.C. §§ 1343, 1346, 2]

21. Paragraphs One through Nineteen of this Indictment are repeated and
realleged as if fully set forth in Count Two.

22. On about the following date, in the District of Guam, Defendant
SHELTON, for the purpose of executing and attempting to execute the Scheme, did
transmit and cause to be transmitted in foreign commerce by means of a wire
communication, certain writings, signs, signals, and sounds: a facsimile transmission
entitled "pro forma invoice" for roofing materials, sent on about February 12, 1998,
from the offices of ATCO, located at or near Tamuning, Guam to the offices of Tilling
Timber PTY, LTD., located in Australia, a foreign nation.

ALL IN VIOLATION OF TITLE 18, UNITED STATES CODE, SECTIONS 1343,
1346 AND 2.

COUNTS THREE THROUGH EIGHT

BRIBERY[18 U.S.C. § 666(a)(1)(B)]

23. Paragraphs One through Seven of this Indictment are repeated and
realleged as if fully set forth in Counts Three through Eight.

24. All acts charged in Counts Three through Eight were conceived and carried
out, in whole or in part, within the District of Guam within five years preceding this
Indictment.

25. As specified below for Counts Three through Eight of this Paragraph, on or
about the dates set forth below in this Paragraph, in the District of Guam, Defendant
SHELTON, being an agent of a territorial government agency, which territorial
government agency received federal assistance in excess of $10,000 in a one-year
period, did corruptly solicit and demand for the benefit of any person, and accept and
agree to accept, anything of value from any person, intending to be influenced and
rewarded in connection with any business, transaction, and series of transactions of
such territorial government agency involving anything of value of $5,000 or more, to
wit: Defendant SHELTON, being the Director of DPR, corruptly solicited, accepted,
and agreed to accept things of value specified below in this Paragraph from the
individuals specified below in this Paragraph, intending to be influenced and rewarded
in connection with the Typhoon Paka Projects specified below in this Paragraph.

ALL IN VIOLATION OF TITLE 18, UNITED STATES CODE, SECTION
666(a)(1)(B).

COUNTS NINE THROUGH ELEVEN

CONSPIRACY TO RESTRAIN TRADE[15 U.S.C. § 3; 18 U.S.C. § 2]

26. The allegations set forth in Paragraphs One through Seven of this
Indictment are repeated and realleged as if fully set forth in Counts Nine through
Eleven.

27. Description of the Offense.

During the periods specified below for Counts Nine through Eleven
in this Paragraph, the exact dates being unknown to the Grand Jury, Defendant
SHELTON and others entered into and engaged in combinations and
conspiracies, identified below in this Paragraph, to suppress and restrain
competition for Typhoon Paka Projects, in unreasonable restraint of territorial
trade and commerce, in violation of the Sherman Act, Title 15, United States
Code, Section 3.

The Defendant SHELTON aided, abetted, counseled, commanded,
induced, and procured each combination and conspiracy charged in Counts Nine
through Eleven, listed below in this Paragraph, and willfully caused others to
perform acts and make statements in furtherance of the charged combinations
and conspiracies, in violation of Title 18, United States Code, Section 2.

Beginning as
early as
December 1997
and lasting until
at least July 1998

10

Agaña Tennis Court /
Paseo de Susanna
Q82599-020
Q82599-021

$175,000

Beginning as
early as
December 1997
and lasting until
at least July 1998

11

Paseo Billboard Q992500-102

$13,750

Paseo Scoreboard Q992500-103

$23,500

Paseo FlagpoleQ992500-104

$22,700

Beginning as
early as April
1999 and lasting
until at least
October 1999

The combinations and conspiracies charged in Counts Nine
through Eleven each consisted of an agreement, understanding, and concert of
action among Defendant SHELTON and co-conspirators, the substantial terms
of which were to rig price quotations offered for, and to allocate, Typhoon Paka
Projects, as specified in this paragraph.

For the common purpose of forming and carrying out each
combination and conspiracy charged in Counts Nine through Eleven, Defendant
SHELTON and others conspired, among other things, to:

allocate upcoming Typhoon Paka Projects to particular
persons;

discuss price quotations on upcoming Typhoon Paka
Projects;

agree on the price quotations they would submit for that
work;

submit artificially high, non-competitive amounts in their
price quotations offered for that work;

perform the work at artificially high, non-competitive
prices;

submit to DPR invoices and other documents as required;
and

receive compensation from DPR for the work.

28. Co-conspirators. Various individuals and corporations not made
defendants in this Indictment participated as co-conspirators in each combination and
conspiracy charged in Counts Nine through Eleven of this Indictment and performed
acts and made statements in furtherance of it.

29. Territorial commerce. During the periods covered by Counts
Nine
through Eleven, each and every Typhoon Paka Project specified above in Counts Nine
through Eleven involved substantial trade and commerce in the Territory of Guam.
Price quotation, invoicing, work, and payment on each Typhoon Paka Project occurred
in the Territory of Guam.

30. Jurisdiction and venue. Each combination and conspiracy
charged in
Counts Nine through Eleven was planned, discussed, and implemented, among other
places: where the work was to occur and did occur; in Defendant SHELTON's office
at Paseo de Susanna; and in the offices of co-conspirators and those whom Defendant
SHELTON aided and abetted, all in the Territory of Guam, within the five years
preceding the return of this Indictment.

ALL IN VIOLATION OF TITLE 15, UNITED STATES CODE, SECTION 3, AND
TITLE 18, UNITED STATES CODE, SECTION 2.

COUNT TWELVE

MONEY LAUNDERING CONSPIRACY[18 U.S.C. §1956(h)]

INTRODUCTION

31. Paragraphs One through Seven of this Indictment are repeated and
realleged as if fully set forth in Count Twelve.

32. Among the DPR Typhoon Paka Projects were the Paseo Light Tower and
Ypao Beach Pavilion and Cabanas.

CONSPIRACY

33. Beginning as early as about December 17, 1997, a more exact date being
unknown to the Grand Jury, and continuing thereafter to about May 26, 1998, in the
District of Guam and elsewhere, Defendant SHELTON did conspire, confederate and
agree with others known and unknown to the Grand Jury, to commit certain offenses
under Title 18, United States Code, Section 1957, as follows:

a. to knowingly engage and attempt to engage in monetary
transactions, affecting interstate and foreign commerce, in criminally
derived property that was of a value greater than $10,000, such property
having been derived from specified unlawful activity, that is wire fraud,
a violation of Title 18, United States Code, Section 1343.

MANNER AND MEANS OF THE CONSPIRACY

The objects of the conspiracy were to be accomplished and were accomplished
as follows:

34. It was part of the conspiracy that Defendant SHELTON would
benefit
from the wire fraud activity.

35. It was further part of the conspiracy that on about January 12, 1998
Defendant SHELTON, on behalf of DPR, accepted two artificially high,
non-competitive price quotations for the Paseo Light Tower project. Each of these two
price quotations was dated December 31, 1997.

36. It was further part of the conspiracy that on about January 12, 1998
Defendant SHELTON, on behalf of DPR, accepted a third artificially high,
non-competitive price quotation for the Paseo Light Tower project that was lower than
the other two price quotations, and designated by a co-conspirator to win the
contract at an artificially high price of $134,000. This price quotation was dated
January 12, 1998.

37. It was further part of the conspiracy that on about January 15, 1998
Defendant SHELTON, on behalf of DPR, awarded the Paseo Light Tower project to
the designated contractor.

38. It was further part of the conspiracy that on about January 15, 1998
Defendant SHELTON signed and dated a Government of Guam Requisition
document authorizing the Paseo Light Tower project in the amount of $134,000.

39. It was further part of the conspiracy that on about February 12, 1998
Defendant SHELTON accepted a billing invoice from a co-conspirator requesting
partial payment in the amount of $85,500 on the Paseo Light Tower project.

40. It was further part of the conspiracy that on about February 20, 1998
Defendant SHELTON caused the Government of Guam to prepare and distribute a
check made payable to the project contractor in the amount of $85,500 in partial
payment for work on the Paseo Light Tower project, which monies were proceeds of
the wire fraud activity.

41. It was further part of the conspiracy that on about February 26, 1998
the project contractor utilized a portion of the check funds to purchase a cashier's
check in the amount of $70,000 made payable to a co-conspirator.

42. It was further part of the conspiracy that on about February 27, 1998
the co-conspirator caused the cashier's check, in the amount of $70,000 to be
deposited into a bank account that did not belong to him but to which he had
access.

43. It was further part of the conspiracy that on about February 20, 1998
Defendant SHELTON solicited a bribe from a co-conspirator to compensate him for
his role in fraudulently awarding the government contract for the Paseo Light
Tower project. Defendant SHELTON specified that his bribe be paid to him in the
form of cash.

44. It was further part of the conspiracy that on about March 3, 1998,
Defendant SHELTON accepted a bribe in the amount of $15,000 in cash from a
co-conspirator in connection with the Paseo Light Tower project.

45. It was further part of the conspiracy that on about April 7, 1998
Defendant SHELTON accepted a billing invoice from a co-conspirator requesting
final payment in the amount of $48,500 on the Paseo Light Tower project.

46. It was further part of the conspiracy that on about May 26, 1998
Defendant SHELTON caused the Government of Guam to prepare and distribute a
check made payable to the project contractor in the amount of $48,500 in final
payment for work on the Paseo Light Tower project, which monies were proceeds of
the wire fraud activity.

47. It was further part of the conspiracy that on or about May 26, 1998 the
project contractor utilized a portion of the check funds to purchase a cashier's check
in the amount $19,640 made payable to a business entity as designated by a co-conspirator.

48. It was further part of the conspiracy that on or about May 26, 1998 the
co-conspirator caused the cashier's check, in the amount of $19,640 to be deposited
into a bank account that did not belong to him but to which he had access.

49. It was further part of the conspiracy that on about December 30, 1997
Defendant SHELTON, on behalf of DPR, accepted two artificially high,
non-competitive price quotations for the Ypao Beach Pavilion and Cabanas project.

50. It was further part of the conspiracy that on about December 30, 1997
Defendant SHELTON, on behalf of DPR, accepted an artificially high, non-competitive
price quotation for the Ypao Beach Pavilion and Cabanas project that
was lower than the other two price quotations, was designated by a co-conspirator
to win the contract at an artificially high price of $145,000, and was supported by
other artificially high, non-competitive price quotations.

51. It was further part of the conspiracy that on about December 30, 1997
Defendant SHELTON solicited a bribe from the co-conspirator to compensate him
for his role in fraudulently awarding the government contract for the Ypao Beach
Pavilion and Cabanas project. Defendant SHELTON and the co-conspirator
agreed to the bribe amount of $45,000. Defendant SHELTON specified that his
bribe be paid to him in the form of cash.

52. It was further part of the conspiracy that on about January 14, 1998
Defendant SHELTON, on behalf of DPR, awarded the Ypao Beach Pavilion and
Cabanas project to the designated contractor co-conspirator.

53. It was further part of the conspiracy that on about January 14, 1998
Defendant SHELTON signed and dated a Government of Guam Requisition
document authorizing the Ypao Beach Pavilion and Cabanas project in the amount
of $145,000.

54. It was further part of the conspiracy that on about February 12, 1998
Defendant SHELTON accepted a billing invoice for an amount of $101,500 from a
co-conspirator requesting partial payment on the Ypao Beach Pavilion and Cabanas
project.

55. It was further part of the conspiracy that on about February 20, 1998
Defendant SHELTON caused the Government of Guam to prepare and distribute a
check made payable to the project contractor in the amount of $101,500 in partial
payment for work on the Ypao Beach Pavilion and Cabanas project, which monies
were proceeds of the wire fraud activity.

56. It was further part of the conspiracy that on about February 26, 1998
the project contractor co-conspirator prepared and issued checks in amounts of
$26,951, $12,746, $9,552.20 and $8,750.80 payable to two business entities and an
individual for the benefit of Defendant SHELTON and a co-conspirator. The
co-conspirator utilized these funds to obtain cash which would be used, in part, to pay
Defendant SHELTON the bribe that he requested.

57. It was further part of the conspiracy that beginning on about March 3,
1998 and then within several days following Defendant SHELTON accepted bribes
aggregating $45,000, in cash, from a co-conspirator in connection with the Ypao
Beach Pavilion and Cabanas project.

58. It was further part of the conspiracy that on about April 9, 1998
Defendant SHELTON accepted a billing invoice for an amount of $43,500 from a
co-conspirator requesting final payment on the Ypao Beach Pavilion and Cabanas
project.

59. It was further part of the conspiracy that on about May 26, 1998
Defendant SHELTON caused the Government of Guam to prepare and distribute a
check made payable to the project contractor co-conspirator in the amount of
$43,500 in final payment for work on the Ypao Beach Pavilion and Cabanas project,
which monies were proceeds of the wire fraud activity.

60. Paragraphs One through Seven of this Indictment are repeated and
realleged as if fully set forth in Counts Thirteen and Fourteen.

61. As specified in Counts Thirteen and Fourteen below, on about the
dates set forth below, in the District of Guam and elsewhere, the Defendant
SHELTON, did knowingly engage, attempt to engage, cause to engage and attempt
to cause to engage in monetary transactions, affecting interstate and foreign
commerce, in criminally derived property that was of a value greater than $10,000,
that is deposits of funds and monetary instruments in the amounts set forth below,
such property having been derived from specified unlawful activity, that is wire
fraud, a violation of Title 18, United States Code, Section 1343:

COUNT

ACCOUNT NAME

BANK NAME

DATE OF DEPOSIT

CHECK AMOUNT

13

Lee Yoon

Oceanic Bank

February 27, 1998

$70,000

14

Guam Korean
Television

Bank of Guam

February 27, 1998

$26,951

ALL IN VIOLATION OF TITLE 18 UNITED STATES CODE, SECTIONS 1957
AND 2.

FORFEITURE ALLEGATION

MONEY LAUNDERING FORFEITURE

62. Beginning as early as about December 17, 1997, a more exact date
being unknown to the Grand Jury, and continuing to about May 26, 1998, in the
District of Guam and elsewhere, Defendant SHELTON did knowingly and willfully
commit violations of Title 18, United States Code, Sections 1956 and 1957, as
alleged in Counts Twelve, Thirteen and Fourteen of this Indictment, which are
incorporated by reference herein.

63. Pursuant to Title 18, United States Code, Section 982(a)(1), upon
conviction, Defendant SHELTON shall forfeit to the United States all right, title,
and interest in any and all property involved in said transactions in violation of
Title 18, United States Code, Sections 1956 and 1957, and all property traceable to
such property, including the following: 1) all money or other property that was the
subject of each transaction; 2) all commissions, fees and other property constituting
proceeds obtained as a result of those violations; and 3) all property used in any
manner or part to commit or to facilitate the commission of those violations, as to
which properties Defendant SHELTON is jointly and severally liable.

64. The United States intends to forfeit property of Defendant
SHELTON
including, but not limited to, the following:

The sum of money equal to the sum involved in the violations
set forth in Counts Twelve, Thirteen and Fourteen;

All property involved in the violations set forth in Counts
Twelve, Thirteen, and Fourteen of this Indictment, and all property
traceable thereto;

All other property of Defendant SHELTON, up to the value of
any property described in subparagraphs a. and b. above, if by any act
or omission of Defendant SHELTON said property, or any portion
thereof, cannot be located upon the exercise of due diligence; has been
transferred, sold to or deposited with a third party; has been placed
beyond the jurisdiction of the court; has been substantially diminished
in value; or has been commingled with other property which cannot be
divided without difficulty, in which case such other property shall
be substituted and forfeited to the United States pursuant to Title 21,
United States Code, Section 853(p), as incorporated by Title 18, United
States Code, Section 982(b).